Australian Development Gateway

The Australian Development Gateway (ADG) strives to support members of the development community in their efforts to reduce poverty and enhance sustainable development in the Asia Pacific region. The site has been created with participation from members of government, private, academia and non-government organisations. User feedback mechanisms have been incorporated to guide future directions of the site. The site is optimised for low bandwidth access to enable the widest participation throughout the Asia Pacific region.

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Risk assessment & management

The macro financing of natural hazards in developing countries (pdf 300kb)

This World Bank paper suggests a financial model for risk funding that would provide countries with strong economic incentives to engage in active risk management.

There are many practical reasons and financial incentives for disaster-prone developing countries to rely on post-disaster aid instead of proactive ex ante risk management through insurance. The paper explains the main limitations of post-disaster funding, then sets out its model, using graphical analyses to illustrate the tradeoffs involved in devising efficient risk financing structures. It proposes a model which would reward those countries which had invested in ex ante risk management with additional fiscal resources.

This would involve partially linking donors' post-disaster reconstruction grants and emergency loans from major development banks to progress achieved by countries in catastrophe risk management. This approach would also rest on leveraging the Bank's emergency funding with that of international reinsurance and capital markets.

 

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